(b)By inserting in subsections (3)(a)(ii) and (c)(ii), and (4)(b), after the word “rate”, the words “or any amount of a student loan”.

(3)Section 307 of the principal Act is amended by repealing subsection (5), and substituting the following subsection:

“(5)A person (whether or not a recipient) who is asked questions during an investigation under subsection (4) must answer the questions.”

(4)Section 307 of the principal Act is amended by inserting, after subsection (6), the following subsection:

“(6A)However, where a person other than the recipient has without reasonable cause failed or refused to comply with subsection (5), the recipient must be given an opportunity to provide the information sought before any action is taken in respect of the recipient under subsection (6).”

(2)Section 307A(2) of the principal Act is amended by inserting, after paragraph (d), the following paragraph:

“(da)Student loan information about any person may be used by the department for the purposes of verifying—

“(i)The entitlement or eligibility of any person to or for any allowance or benefit; or

“(ii)The amount of any allowance or benefit to which any person is or was entitled or for which any person is or was eligible:”.

9Recovery of debts

(1)Section 307B of the principal Act is amended by repealing subsection (1), and substituting the following subsection:

“(1)This section applies to any person who is indebted to the Crown in respect of the payment to that person of an allowance, or the payment to that person of an allowance at a rate, or the payment to that person of any amount of a student loan or other money, to which he or she was not or is no longer entitled.”

(2)Section 307B(2) of the principal Act is amended by repealing paragraph (a), and substituting the following paragraphs:

“(a)In the case of an allowance debt, by deduction from—

“(i)Any allowance; or

“(ii)Any benefit under The Social Security Act 1964 to which that person may become subsequently entitled; or

“(aa)In the case of a student loan debt, by deduction from—

“(i)Any allowance (including any case where the living costs have already been paid under the loan for the period to which the debt relates); or

“(ii)Any benefit under The Social Security Act 1964 to which that person may become subsequently entitled; or

“(ab)In the case of a benefit debt, by deduction from any allowance; or.”